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Kirin Group Q4 2010 Presentation and 2011 Outlook

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Management summary 2010 saw aadecrease in sales but an increase in operating income. The pursuit of value proposals tailored 2010 saw decrease in sales but an increase in operating income. The pursuit of value proposals tailored to customer needs, coupled with the introduction of lean management predicated on removing strain, to customer needs, coupled with the introduction of lean management predicated on removing strain, waste and irregularities in all areas (as opposed to evaluation based solely on sales volume) is designed waste and irregularities in all areas (as opposed to evaluation based solely on sales volume) is designed to boost profitability and efficiency. to boost profitability and efficiency. Changes in the business environment greater than anticipated. We will endeavour to strengthen brand Changes in the business environment greater than anticipated. We will endeavour to strengthen brand marketing of value creation tailored to customer needs for realizing autonomous growth at the marketing of value creation tailored to customer needs for realizing autonomous growth at the foundations in 2011. foundations in 2011. In 2011 we will maintain our commitment to ““qualitativeexpansion” and drive the internationalization of In 2011 we will maintain our commitment to qualitative expansion” and drive the internationalization of Group operations, while accelerating developments in Southeast Asia and China and strengthening our Group operations, while accelerating developments in Southeast Asia and China and strengthening our Australian operations. Australian operations. 1

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2010 summary  2010, the first year of the medium-term business plan, saw the introduction of customer value creation  2010, the first year of the medium-term business plan, saw the introduction of customer value creation programs at operating companies programs at operating companies  CCT cost synergies and cost reduction programs at operating companies helped to boost profitability and  CCT cost synergies and cost reduction programs at operating companies helped to boost profitability and efficiencies efficiencies  Discussions were initiated with Fraser and Neave on generating synergies with aaview to establishing aa  Discussions were initiated with Fraser and Neave on generating synergies with view to establishing solid foundation for soft drink operations in Southeast Asia solid foundation for soft drink operations in Southeast Asia Outline of 2010 business philosophy Generate group synergies Pursue Integrated Beverages Group strategy Improved profitability and asset efficiencies Realize lean Strengthen technical capabilities management and customer relationshipEnhancing the transparency and integrity of corporate governance within the Group  An independent external committee was set up to report on inappropriate fish feed transactions by Mercian. The committee’s recommendations, delivered in November, were used as the basis for deliberations on corporate governance. 2

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2010 Review 1: Creating customer value  Product development at operating companies predicated on creating added value  Product development at operating companies predicated on creating added value  Working together in group-wide sales field to deliver sales synergies  Working together in group-wide sales field to deliver sales synergiesIntegrated Beverages Group strategy  Product proposals to generate customer value  Kirin Gogo-no-kocha Espresso Tea, a new value proposal in the black tea market, proved a major hit  Kirin Free, launched in 2009, spawned a new market in non-alcoholic beer-tasting beverages and continues to grow in popularity  Collaborations between domestic alcoholic and non-alcoholic beverages operations within the Group Kirin Beer Sales Division plays central role selling Kirin Beverages and Mercian products in the on-premise market, and doing well in marketing and make sales increase  Soft drink operations in Southeast Asia ⇒ Ramping up discussions with Fraser and Neave, looking to create early synergiesHealth food and functional food business  Initial sales of Kirin Plus-i products: Sales = ¥8 billion (160% of start-of-year target)Rising growth rate of pharmaceuticals business  Business integration contributes to domestic retail  strong sales of flagship lines such as NESP and ESPO  Faster research and development  KW-0761 on target for 2012 launch  Robust development structures for the future  completion of new research building at Tokyo Research Park 4

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Business approach for 2011  To continue working to create more competitive business fundamentals in order to achieve the targets of  To continue working to create more competitive business fundamentals in order to achieve the targets of the medium-term business plan, while making aaquantum leap in overseas operations as aameans the medium-term business plan, while making quantum leap in overseas operations as means of promoting rapid growth of promoting rapid growth Priority areas 1. Profitability and efficiency improvements 2. Brand marketing of value creation tailored to customer needs 3. New paradigm for rapid growth predicated on overseas operations Business Approach for 2011 Integrated Beverages Integrated Beverages Profitability and efficiency Profitability and efficiency Group strategy Group strategy improvements improvements Stronger foundations and quantum leap 2. Brand marketing of value creation 2. Brand marketing of value creation 3. New paradigm for quantum leap 3. New paradigm for quantum leap tailored to customer needs tailored to customer needs predicated on overseas operations predicated on overseas operations 6

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Further profitability and efficiency improvements ■ The CCT synergy targets in the medium-term business plan will be achieved in 2011, and ■ The CCT synergy targets in the medium-term business plan will be achieved in 2011, and aim for further benefits aim for further benefits (Unit: billion yen) 2010-2012 target in 2010 2010 CCT 2011 targets medium-term targets actual business plan Production and 0.8 3.8 4.7 5.0 logistics Procurement 4.6 8.2 4.0 10.1 IT/other 2.1 2.9 0.7 4.0 Total 7.5 14.9 9.4 19.1 9

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Brand marketing of value creation tailored to customer needs  Strengthening product brands through selection of leading brand categories and concentration of  Strengthening product brands through selection of leading brand categories and concentration of management resources management resources  Promoting the development of products and categories designed to provide new forms of customer value  Promoting the development of products and categories designed to provide new forms of customer value  Concentrated investment on leading brands such as Kirin Ichiban Shibori, Nodogoshi (Nama) and Hyoketsu; increased advertising and promotion in combination with product refreshment to enhance the brand Kirin Brewery  Creating new forms of customer value that transcend existing categories by combining health consciousness with appealing flavors and are designed for new lifestyles and make use of new production techniques  Stronger focus on core brand products such as Kirin Gogo-no-Kocha and Kirin FIRE  The challenge to achieve growth and boosting demand for soft drinks through new concepts and Kirin Beverage proposals that transcend existing categories under the reformed revenue structure.  Concentrated investment on daily wines; enhancing the brand further through additions to the Mercian product lineup and product refreshment  Joint development of new brand proposals with Lion Nathan 10

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Quantum leap in overseas—China and Southeast Asia  Using the partnership with China Resources Enterprise for establish aaleading presence in the rapidly  Using the partnership with China Resources Enterprise for establish leading presence in the rapidly growing soft drink market in China growing soft drink market in China  Seeking to implement collaborations with Fraser and Neave as quickly as possible  Seeking to implement collaborations with Fraser and Neave as quickly as possible China • Using the new partnership with China Resources Enterprise to develop a solid base in the soft drinks market in China • Using the joint venture with China Resources Enterprise to integrate the soft drink operations of Southeast Asia the two companies. Combine the respective strengths of each company to speed up expansion  Commence program for creating and development. synergies between Fraser and Neave Strengths of Kirin Group to be in equity method and Kirin Beverage Product development, technical standards, Product development, technical standards, - Sharing sales channels research and marketing research and marketing - Joint product development and OEM arrangements  Strengths of China Resource Enterprise - Joint procurement of production Solid foundations including extensive logistics. Solid foundations including extensive logistics. materials Experience and deep understanding in Experience and deep understanding in Chinese market Chinese market  Establish a stronger presence in the Philippine beer market through San Joint venture company targeting sales of 6 Joint venture company targeting sales of 6 Miguel Brewery and consolidate the billion yuan (¥75.7 billion) by 2015 billion yuan (¥75.7 billion) by 2015 foundations of San Miguel International 11

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Kirin Holdings Singapore Kirin Holdings Singapore has responsibility for the entire Southeast Asia region. Faster development of Kirin Holdings Singapore has responsibility for the entire Southeast Asia region. Faster development of operational structure transferred of control from Japan operational structure transferred of control from Japan Faster implementation of Integrated Beverages Group strategy Faster implementation of Integrated Beverages Group strategy  Development and implementation of regional growth strategies in  Development and implementation of regional growth strategies in South Asia South Asia  Joint product development to use geographical proximity and create  Joint product development to use geographical proximity and create synergies with good use of group resources and strength synergies with good use of group resources and strength Personnel deployment designed to strengthen operational Personnel deployment designed to strengthen operational Kirin Holdings Singapore foundations foundations  On-site Japanese staff and Local hiring practices  On-site Japanese staff and Local hiring practices  Personnel exchange programs designed to cultivate a global  Personnel exchange programs designed to cultivate a global perspective among employees perspective among employees 13

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Engage in CSR activities that enhance KIRIN’s coexistence with society■The Kirin Group considers fulfilling CSR an integral part of its business management,■The Kirin Group considers fulfilling CSR an integral part of its business management, Helping realize aasustainable society with CSR through business and CSR as aacorporate citizen Helping realize sustainable society with CSR through business and CSR as corporate citizen Becoming a low-carbon corporate group - Halve total value chain CO2 emission by 2050 compared to 1990 Quantative - Reduce CO2 emission from manufacturing, distribution and office activities by at least 1% per year through 2050 Targets - Reduce domestic CO2 emissions from manufacturing, distribution and office activities by 35% by 2015 compared to 1990 Reduced use of resources such as modal shift ＜Key Action＞ Reduce use of energy by development of new use of byproduct, weight saving of packages as well Environmentally friendly product such as adopting recyclable material Preventing driving under influence Sponsoring Japan’s national soccer team With the 0.00% alcohol Kirin FREE beer-taste Kirin is joining with fans to support Japan’s national beverage, Kirin is enhancing to help curb driving team to become the world’s top 10 under the influence Right：Ｊ.LEAGUE PHOTOS Oct. 8th 2010 Kirin Challenge Cup 2010 the Japan-Argentina match, Japan National team Left：Kirin soccer field 2010 14

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Expansion of non-alcohol beverage business in China (JV with China Resources Enterprise) Strengths of China Resources Enterprise (CRE)  High profitability and growth rate of water business ・ Low cost operations ・ Strong distribution network that covers approx. 400,000 retail stores mainly in South China ・ C’estbon brand boasts No.1 market share in bottled water products (23%*1) in Guangdong, the biggest non-alcohol beverage market in China  Distribution network of CRE group *1 2009 figures from the China ・ Retail network of over 3,000 supermarkets throughout China, and the possibility of using Beverage Industry Association the fine channels of CRE Snow  Experience and deep understanding in Chinese market Strengths of Kirin  Product development capabilities and technology in developing value-added non-alcohol beverages ・ Successful result in China (“Gogo-no-Kocha”), wealth of appealing new product ideas for the Chinese market  Production facilities and sales network in East China Key JV strategies: Aiming to be a leading player in the Chinese non-alcohol beverage market  Product strategy ・ Enhancement of channels through expanding mineral water business in addition to existing water business ・ Introducing value-added non-alcohol beverage products into the enhanced platform  Area strategy ・ Further enhancement of existing platform in South China ・ Expanding coverage in South West China, East China and North China, particularly in major cities ・ Boosting sales in regional cities (Tier 3･4) where CRE has strong presence  Profitability JV 2015 targets ・ Maintain high growth rate exceeding market average ・ Pricing strategy according to each area Sales: 6 billion RMB (75.7 billion JPY) ・ Controlling cost management, and improving profitability EBIT margin: over 7% 29

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Kirin Brewery Products and sales strategies in 2011 1. Strengthening the brand through selection and concentration - Concentrating resources on growth categories and best-performing brands 2. Creating value geared towards new products, categories and business models - Keeping up to date with the needs of customers Domestic - Utilizing product and technology development expertise for innovation 3. Making greater use of value proposal marketing - Kirin Beer Marketing (to be established in 2012) - Developing proposals as a general liquor supplier incorporating foreign liquors from Diageo and wines from Mercian - Pursuing Integrated Beverage Group strategy through sales programs coordinated with Kirin Beverage and Mercian 4. Boosting sales of the Kirin Beer brand in overseas markets Overseas - Boosting sales of products such as Ichiban Shirobiri in the United States, Europe and Asia - Test-marketing of Kirin FREE with a view to expanding into overseas markets 31

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Group synergies ■ Joint development of wine products by Lion Nathan National Foods and Mercian ・ Joint development of St Hallett Tatiara wines specifically for the Japanese marketplace through a partnership between Mercian and the famed St. Hallett winery in Australia (owned by Lion Nathan National Foods) ・ Good quality, inexpensive Australian wine is imported in bulk and bottled at Mercian’s Fujisawa plant ■ Strengthening the sales foundations through the integrated beverages group strategy ・ Mercian and Kirin Brewery work together in the sales field to develop wine marketing structures for the volume sales market Sales of Mercian daily wines up 6% by volume in 2010 (in annual terms) ・ Kirin Brewery handles sales and marketing of Kirin Oolong Tea (developed by Kirin Beverage exclusively for the restaurant trade) Strong sales during 2010 - 20% above targets ■Sales targets reached for first Kirin Plus-i products released under Group-wide Kirin Health Project ・ Total for five brands at four companies has already reached ¥8 billion, well in excess of start-of-year target for 2010 of ¥5 billion ・ Projections of ¥12 billion in 2011 and ¥30 billion in 2012 ・ 2011 action policy: Continue to create proposals tailored to customer lifestyles by promoting products featuring the regenerative amino acid ornithine from Kyowa Hakko Bio and using the technological resources of the Group to develop second Kirin Plus-i 33 products